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Abstract

Various farm organizations and political parties are taking sides on whether the FAIR Act needs to be scraped or just modified. This study analyzes three such proposals: the U.S. House of Representatives proposal (H.R. 2646), the American Farm Bureau proposal, and the National Farmers Union proposal. The continuation of the FAIR Act is also included as an another alternative. The H.R. 2646 and the American Farm Bureau proposals are modifications of the FAIR Act while the National Farmers Union proposal is a totally redesigned bill. The H.R. 2646 and the Farm Bureau proposals are very similar in their results. They provide higher net farm income for the large size farm than the Farmers Union proposal does early in the forecast period, but the Farmers Union proposal provides higher net farm income in the last three years of the time period. The Farmers Union proposal provides higher net farm income for the medium and small size farm than either the H.R. 2646 or the Farm Bureau proposals because of the targeting feature. The FAIR Act provides less net farm income for all size farms than any other proposal.

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